May 16 (Bloomberg) -- Asian stocks fell, with a regional
benchmark index headed for its biggest loss this year, as
Greece’s move to call new elections increased concern the
country will leave the euro and derail efforts to contain the
region’s debt crisis.

The MSCI Asia Pacific Index slid 2.6 percent to 114.13 as
of 8:38 p.m. in Tokyo, headed for its biggest loss since
November. The gauge is poised to close more than 10 percent
below this year’s high on Feb. 29, a retreat some investors call
a correction.

“The Asian market is caught up in global events, as
overseas investors avoid risky assets and drop their overall
positions,” said Naoki Fujiwara, chief fund manager at Shinkin
Asset Management Co. “The Greece issue is the bottleneck. Until
we see the election results it’s hard to actively take a
stance.”

More than seven stocks slid for each that rose on the
measure, which is headed for its longest streak of declines
since April 11.

Japan’s Nikkei 225 Stock Average declined 1.1 percent even
as the nation’s machinery orders fell less than economists
forecast in March from the previous month. South Korea’s Kospi
Index retreated 3.1 percent. Australia’s S&P/ASX 200 Index
dropped 2.4 percent as a survey showed the nation’s consumer
confidence was little changed near the lowest level this year.

Relative Value

The MSCI Asia Pacific Index, which includes some companies
from emerging markets, is less than 0.5 percent from erasing
this year’s gains. That compares with a 5.8 percent gain by the
S&P 500 and a 0.5 percent advance by the Stoxx Europe 600 Index.
Stocks in the Asian benchmark are valued at 11.9 times estimated
earnings on average, compared with a multiple of 12.7 for the
S&P 500 and 10.2 times for the Stoxx 600.

Futures on the Standard & Poor’s 500 Index rose 0.2 percent
after falling 0.5 percent earlier today. The index slid 0.6
percent in New York yesterday amid concern a political impasse
in Greece will destabilize austerity plans in Europe.

Fresh Election

Greek leaders said a second election will be held after
political gridlock left the nation without a government since
elections on May 6. Greeks have withdrawn as much as 700 million
euros ($893 million) from the nation’s banks, President Karolos
Papoulias told party leaders.

German Chancellor Angela Merkel and French President
Francois Hollande said they would consider measures to spur
economic growth in Greece as long as voters there committed to
the austerity demanded to stay in the euro.

Nissan dropped 2.2 percent to 752 yen in Tokyo, while
Esprit Holdings Ltd., a clothier that depends on Europe for most
of its sales, retreated 5.5 percent to HK$13.30 in Hong Kong.

“As the pressure builds in Europe, you need to see another
mini crisis before policy makers will step in, and we’re not
there yet,” said Andrew Pease, Sydney-based chief investment
strategist for the Asia-Pacific region at Russell Investment
Group, which manages about $150 billion. “Markets and economies
in Asia are at the mercy of the export story.”

Jiangxi Copper Tumbles

Mining companies declined after the London Metal Exchange
Index of prices for six industrial metals including copper and
aluminum slid 0.6 percent yesterday.

Toll Holdings slumped 15 percent to A$4.73 in Sydney, the
steepest drop in the MSCI Asia Pacific Index, after saying
earnings before interest and tax will be A$400 million ($397
million) to A$420 million in the 12 months ending June compared
with A$436 million a year earlier.

Sinofert will be removed from the MSCI China index and the
two regional banks will be deleted from MSCI Japan index
effective May 31, MSCI Inc. said in a statement yesterday.

Olam International Ltd., one of the world’s top three
suppliers of rice, cocoa, and coffee, dropped 11 percent to
S$1.785 in Singapore after saying third-quarter profit declined
23 percent from a year earlier amid waning demand.